Following the Devastation of Hurricane Hugo, Charleston, South Carolina Was

question 19

Multiple Choice

Following the devastation of Hurricane Hugo, Charleston, South Carolina was cut off from the outside world and without electricity.Prices for bagged ice rose by 1,000 percent and electric generators by 300 percent and at least one tree removal firm charged $4,000 to cut up a tree.City government responded by passing an emergency law prohibiting price "gouging." This law is an example of

• A)the cost disease of services.
• B)a price ceiling.
• C)the laissez-faire rule.
• D)the indispensable necessity syndrome.

---

Definitions:

P/E Ratio

The price-to-earnings ratio is a valuation metric for a stock, calculated by dividing the market price of a share by the earnings per share, indicating how much investors are willing to pay per dollar of earnings.

Price-to-Sales Ratio

A valuation ratio that compares a company's stock price to its revenues, an indicator of the value placed on each dollar of a company's sales or revenues.

Dividend Discount Model

A method of valuing a company's stock price based on the theory that its stock is worth the sum of all its future dividend payments, discounted back to their present value.

Telecommunications

The transmission of signals, messages, words, writings, images, and sounds or information of any nature by wire, radio, optical, or other electromagnetic systems.